Mideast Stocks: Most Gulf markets gain ahead of Fed verdict

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Most stock markets in the Gulf ended higher on Wednesday as ‍investors awaited remarks ‍from Federal Reserve Chair Jerome Powell for policy clues. As of Wednesday, markets are almost fully pricing in a 25-basis-point interest rate cut following the U.S. central bank's ⁠two-day Federal Open Market Committee meeting, despite the committee being more divided than it ⁠has been ‌in years.

The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for ⁠regional monetary stability. Saudi Arabia's benchmark stock index gained 0.3%, with ACWA Power Company gaining 4%.

However, oil giant Saudi Aramco eased 0.1%. The Fed meeting will be especially important for the guidance it offers on monetary policy and economic ⁠projections for the year ahead, said Daniel Takieddine, co-founder and CEO, Sky Links Capital Group.

"If the Fed signals readiness for further rate ‍cuts next year, it would likely have a positive impact on GCC economies and corporate earnings. Consequently, the Saudi market may find further support following the decision."

Dubai's main share index gained 0.5%, led by a 2.7% rise in top lender Emirates NBD. In Abu Dhabi, the index eased 0.1%. The Qatari benchmark lost 0.1%. The Abu Dhabi stock market continues to face headwinds from lower oil prices and a negative outlook for the crude market heading into 2026, said Takieddine.

Oil prices - a catalyst for the Gulf's financial markets - held steady after falling about 1% in the previous session, as investors watched for ⁠progress in Russia-Ukraine peace talks and awaited a decision ‌on U.S. interest rates. Crude prices are hovering near multi-month lows, putting pressure on the fiscal balances of oil-dependent Gulf nations through lower revenues.

Outside the Gulf, Egypt's ‌blue-chip index ⁠added 0.3%.